That's an early April Fool's Day joke.
Big drugmaker Mylan apparently won't be paying higher rebates to Medicaid for its life-saving EpiPen devices until April 1. That's despite having agreed Friday to a whopping $465 million settlement over claims the company had been knowingly shortchanging the government program on such rebates, a regulatory filing suggests.
Mylan, until next April, will be paying Medicaid a rebate rate of just 13 percent on EpiPens — instead of a rate of at least 23.1 percent, and possibly a rate that some analysts have suggested could approach nearly 100 percent of sales, the filing by Mylan suggests.
When asked if in fact the company would be paying the lower 13 percent rate until then, a Mylan spokesman declined to comment. A spokesman for the federal Centers for Medicare & Medicaid Services also declined to comment.
The 8-K filing with the Securities and Exchange Commission does not say why federal officials gave Mylan such a grace period.
The same filing reveals that Mylan is under investigation by the SEC in connection with rebates Mylan pays to Medicaid for EpiPen and other products.
Mylan's filing also said it is cooperating with that investigation by the SEC, which has asked for documents about communications the company had with CMS related to the Medicaid Drug Rebate Program.
Neither Mylan's grace period for paying higher rebates on EpiPen, nor the SEC probe, were disclosed in a press release the company issued Friday announcing the settlement with the Justice Department and federal health regulators. Instead, they were mentioned that day in the 8-K filing.
Before Friday, Mylan had faced increasing scrutiny by Congress and others surrounding outrage over the company having raised the price of EpiPen more than 500 percent in recent years. A two-pack of EpiPens now sells for more than $600.
Families have complained that the cost of the device is straining their household budgets because they often buy multiple packs of EpiPens to have at home, school, work and their car in the event of an a potentially fatal allergic reaction known as anaphylaxis.